The International Organization of Securities Commissions (IOSCO) is a globally acknowledged body that develops international standards which are considered the best practices in securities markets regulation. IOSCO was established in 1983 and it is based in Madrid, Spain. Currently, It has 124 members which include authorities and organizations that regulate the securities markets. Its role is to develop, implement, and promote adherence to internationally recognized standards for securities regulation in order to enhance securities markets’ transparency and protect its investors. In addition, IOSCO plays a role in promoting cooperation among its member concerning fighting financial crimes. Indeed, IOSCO played an integral role in responding to the financial crises that affected the global financial markets. IOSCO defines the following as the objectives it intends to achieve through its members:
To cooperate in developing, implementing and promoting adherence to internationally recognized and consistent standards of regulation, oversight and enforcement in order to protect investors, maintain fair, efficient and transparent markets, and seek to address systemic risks
To enhance investor protection and promote investor confidence in the integrity of securities markets, through strengthened information exchange and cooperation in enforcement against misconduct and in supervision of markets and market intermediaries; and
To exchange information at both global and regional levels on their respective experiences in order to assist the development of markets, strengthen market infrastructure and implement appropriate regulation.
The Board of the International Organization of Securities Committees (IOSCO) approved the membership application of the Palestine Capital Market Authority (PCMA), which was accepted in the meeting that held on the 21st of February 2014 in Kuala Lumpur, Malaysia to become the 124th ordinary member and the 101st signatory to the Multilateral Memorandum of Understanding (MMOU).
That high standing of IOSCO membership encouraged many securities and capital markets regulatory bodies around the world to join the IOSCO as it provides an international endorsement that the regulatory frameworks used by those bodies to regulate and monitor securities markets meet IOSCO’s international standards and requirements. The approval of the IOSCO membership and the admission to the MMoU is a lengthy process that requires immense efforts to meet the legal and technical requirements set by IOSCO and has great consequences on developing the securities regulatory frameworks in admitted countries.
To learn about the standards of the International Organization of Securities Committees (IOSCO) Click Here
The admission to the Multilateral Memorandum of Understanding (MMoU) is considered a significant development and a great achievement for any regulatory body that oversees the securities market as the Memorandum entails its members to cooperate in the regulation of the securities markets and invertors protection. The Memorandum also sets specific requirements that necessitate its members to cooperate and exchange information in order to prevent fraud ,price manipulation, inside trading, or any misconduct that might negatively influence the health of the securities markets.
The admission of the PCMA to the IOSCO and MMoU has positive consequences on the Palestinian securities sector and the investment climate in general since it plays a significant role in increasing the investors’ confidence especially the foreign and institutional investors in the securities listed in Palestine Exchange (PEX). In addition, the membership also serves as an international endorsement that PCMA regulates and monitors the Palestinian securities market in accordance with the IOSCO international standards and principles, which enhances the ability of Palestine Stock Exchange in attracting international investors who pay a great attention to the membership as a part of their investment decision.